mia-ball
08
Dec

New Ideas And Chaos In The Crypto World

IPGP and PYPL. Those are my 2 top picks on this dip and they are unquestionably destined for higher prices. PYPL has the stability of MA and V, while sporting high growth tech stock-like returns, making it a favorite. IPGP is one of the drivers in the next phase of the tech revolution, much like OLED and COHR (which are also going much higher). Truth be told, I feel rather silly holding alternative energy dividend stocks when some of the stocks I’m watching run 50%+ in weeks, rewarding shareholders with some ridiculous gains.

 

 

Speaking of ridiculous gains, Bitcoin is by far the most absurd financial asset I have ever seen. On a monthly time frame, it literally looks like a vertical line going straight up. The average passerby at the gym nowadays is all levered into Bitcoin and I know how that story ends. Don’t get me wrong, I am all about speculation and love the game in itself, but the ‘cryptocurrency’ generation of piker investors are ill-prepared mentally to accept or take drawdowns. They want their gains and they want them now, and god forbid, when BTC drops $5k in a single day, things will get suicidal.

There has been a lot of news circulating, as of late, regarding the financial condition of the worlds largest bitcoin exchange Bitfinex based out of Taiwan/HK. Several months ago, the folks over at Wells Fargo threw Bitfinex under the bus, terminating their services, most likely due to them being a bunch of dicks. Without proper banking, it has been rather difficult to function as an exchange, and I can imagine there is a lot of chicanery going on behind the scenes at the moment, which in turn has helped to inflate Bitcoin prices. Despite controlling close to half of all Bitcoin trades in the world, this exchange has a history of being somewhat negligent, as 72+ million of customer money was stolen after they were hacked.

The real topic of discussion now, however, is regarding the cryptocurrency that they created, Tether, that is supposed to be pegged 1:1 to the USD. There is arguably no transparency, and currently you can neither withdraw nor deposit funds into it, raising many questions. The waters have been muddied, and I can smell some uncertainty in the air, along with a little bit of fraud. At this point, all it would take is a slight offset in withdrawals vs deposits to ignite fear, sending Bitcoins tumbling hard in the other direction.